REG - One Media iP Group - Final Results
22/04/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220422:nRSV9759Ia&default-theme=true
RNS Number : 9759I One Media iP Group PLC 22 April 2022
22 April 2022
One Media iP Group Plc
("One Media", "the Company" or the "Group")
Final Results for the year ended 31 October 2021 and Posting of Accounts
Another year of double-digit earnings growth and investment into
complementary Group platforms
One Media iP (AIM:OMIP), the digital media content provider which exploits
intellectual digital property rights around music, video and copyright
technology, announces its Final Results for the 12-month period ended 31
October 2021.
Financial Highlights
· 10% increase in total revenue and 11% uplift in EBITDA to
£4,389,581 (2020: £4,005,385) and £1,648,598 (2020: £1,485,645)
respectively, driven by organic growth and active management of portfolio in
line with strategy to maximise commercialisation of rights under ownership
· Organic revenue growth in the year of 4.5%
· 10% average organic revenue growth over the last five years,
reflecting the inherent potential of the portfolio before commercialisation
· 13% uplift in net revenue to £2,780,526 (2020: £2,439,352)
· Operating profit increased 5.5% to £1,075,958 (2020:
£1,019,884)
· Cash at 31 October 2021 of £2,565,813 (2020: £6,766,424)
following investment into TCAT Ltd and providing flexibility for investment
into accretive opportunities
· Catalogue valuation of £34.8m, conducted by independent valuers
· IFRS NAV per Ordinary Share increased to 7p (2020: 6p)
· Operative NAV per Ordinary Share 17p (Operative NAV is calculated
by using the IFRS NAV, adjusting for the revaluation of catalogues assets to
fair value and then adding back the catalogue amortisation)
· Final dividend declared of 0.055p per share
Operational and Post-Period Highlights
· £4.3m of investment across nine acquisitions at an average
blended 11.2 multiple, including the producer's income royalties to Take
That's 'A Million Love Songs', 'Could It Be Magic' and 'I Found Heaven', all
from Take That's 1992 debut studio album, Take That & Party
· Largest acquisition undertaken by the Company to date, comprising
the composition rights to over 200 tracks by country music star Don Williams
· All acquisitions in 2021 undertaken via Harmony IP business
division, further diversifying Group revenue streams and generating additional
strategic partnerships
· £0.8m of capex deployed into software development subsidiary
TCAT Limited ("TCAT")
· Board and management team appointed to further progress TCAT
business plan
· Fundraise underway to support next phase of growth for TCAT
directly into the limited company subsidiary
· Positive early trials for TCAT with two major labels, the world's
largest digital aggregator and music trade body, the BPI
Outlook
· Ongoing supportive market backdrop with music industry growth
projections accelerating
· Technology advances delivering increasing opportunities to place
content and grow royalties
Michael Infante, CEO said: "2021 has been active year for One Media,
delivering another strong set of results, driven largely by our independently
valued £34.8 million content catalogue. We welcomed some high-profile names
to our stable, including some of Take That's highest profile hits through the
acquisition of their producer's royalties, as well as music by Kid Creole,
Culture Club and, in our largest acquisition to date, country music star Don
Williams. These income accretive investments are in line with our strategy of
acquiring proven assets that we know can enhance our recurring revenues, while
also providing opportunity to add further value and grow income. This is
supported by our complementary business ventures - Harmony IP and TCAT - which
will both help us diversify and further improve our revenue.
"The outlook for our industry is extremely encouraging, with growth
accelerating and technology advances providing more and more opportunities for
us to place our assets and maximise royalties. Against this and with a strong
balance sheet we're looking to the future with great optimism."
This announcement contains inside information for the purposes of UK Market
Abuse Regulation. The person who arranged the release of this information is
Michael Infante, Chief Executive Officer of the Company.
For further information, please contact:
One Media IP Group Plc
Michael Infante Chief Executive
Tel: +44 (0)175 378 5500
Claire Blunt Chairman
Tel: +44 (0)175 378 5501
Cairn Financial Advisers LLP Nominated Adviser
Liam Murray / Jo Turner / Ludovico Lazzaretti Tel: +44 (0)20 7213 0880
Cenkos Securities plc Broker
Giles Balleny / Max Gould (Corporate Finance) Tel: +44 (0)20 7397 8900
Michael Johnson (Sales)
Pete Flatt / PPR Publicity PR
Tel: +44 (0)7930 304301
About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and distributor with a
catalogue independently valued at £34.8 million (as at April 2022). The Group
specialises in purchasing and monetising intellectual property rights with
proven, repeat income streams. One Media adds value to its content by
maximising its availability in over 600 digital stores globally, including
Apple Music, YouTube, Amazon and Spotify.
One Media's music is also widely used for synchronisation in film and TV
whilst its video content is primarily viewed on YouTube where One Media
operates over 20 YouTube channels as a certified partner. Additionally its
copyright infringement and digital music audit tool software TCAT, is used
daily with major record labels and the world leading digital international
distributor. Men & Motors its branded car channel is now available via
YouTube www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg
(https://www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg)
One Media is listed on the AIM Market of the London Stock Exchange under the
symbol 'OMIP'.
For further information, please visit www.omip.co.uk (http://www.omip.co.uk)
and www.harmonyip.com/ (http://www.harmonyip.com/)
Chairman's Statement
I am pleased to report, following a busy 12 months, another set of positive
results. The Group has posted a 10% increase in revenues to £4.4 million and,
despite some impact from unfavourable foreign exchange movements with
approximately 89% of revenues generated in US dollars, a very healthy 11%
uplift in EBITDA to £1.65 million.
This year's strong performance was driven by the continuing active management
of the portfolio by the One Media team, as well as organic growth propelled by
the increased consumer demand on streaming platforms and other revenue
distributions from digital platforms.
The organic growth of the portfolio in the period was 4.5%. Over the last
five years average organic growth has been 10%, reflecting the inherent value
of the assets the Group invests in and the positive structural trends driving
the music industry which support the investment case. This organic growth is
further supplemented by the proactive commercialisation of the portfolio by
the Company, where it adds considerable value, unlocking the latent potential
of the kinds of copyrights it acquires.
The Group retains a healthy cash position with a cash balance of £2.6 million
and with £1.9 million in structured debt as at 31 October 2021, which puts us
in a strong position for the year ahead, with some important investments
having already been completed post period end.
Given the positive performance, together with the outlook for the Group and
the industry, the Board is pleased to confirm a final dividend for the year of
0.055p per share.
2021 has been an important year strategically, with further capital investment
into complementary Group activities that will diversify and supplement our
revenue streams, while also expediting our overall objective of maximising the
potential of our intellectual property assets.
Harmony IP is already proving a hit with composers, writers and performers and
has been the main avenue for investment in 2021, providing us with an
expanded, more flexible route to market and a vehicle through which to grow
our partnerships with rights owners, while also enhancing revenues.
Alongside this, the business plan for TCAT is progressing well, with a full
management team and board with expertise across the technology, software and
music industries, who are now in place to market the product's capabilities.
TCAT is an exciting prospect for the Group and an attractive tool for the
music industry, which is already clear from the early stage talks and trials
that are underway with some of the biggest names in our sector.
The year was once again impacted by the pandemic, but we very much hope that
we, and the industry, are through the other side of this now, albeit to a
larger degree in some territories compared to others.
Attentions have now, sadly, turned to the horrific events in Ukraine. While
recent sanctions around supplying the Russian Federation via our DSP partners
in Russia, such as Apple and Spotify, may slow growth as these stores have now
partially been suspended, following an audit we are not expecting a material
impact on the Group given the limited levels of business conducted in these
areas.
We are deeply concerned about Russia's invasion of Ukraine and stand with all
of the people who are suffering as a result of the violence. We join all those
around the world who are calling for peace.
I continue to remain excited for the future of One Media and, as always, would
like to extend my thanks to the experienced team of directors, staff,
consultants and professionals across the Group who contribute to our continued
success, as well as our shareholders for their ongoing support.
Claire Blunt
Non-Executive Chairman
Chief Executive's Statement
Strategy overview
One Media Plc is an owner, publisher and distributor of digital music
copyrights, which it actively monetises to deliver proven income streams. We
derive the majority of our revenue from royalties collected from the use of
the Company's content internationally, which we enhance by improving its
availability globally across 600 digital stores (also known as Digital Service
Providers ("DSPs")) including Apple Music, YouTube, Amazon Music and Spotify.
Royalty returns are largely uncorrelated to the performance of the public and
private equity markets, making them predictable and generating an annuity-like
income for investors, which is at the core of our investment case.
Additionally, we generally focus on more mature compositions with a proven
durability, supporting reliable revenues.
We are custodians of an expansive catalogue of over 200,000 music tracks,
diversified across a range of genres including pop, rock, country and
classical, which deliver long term, growing and secure income, around 97% of
which is recurring. Leveraging its expansive industry relationships, the
Company is able to identify proven content which it believes is undervalued or
has latent potential, which we then seek to crystallise on behalf of
shareholders.
In the last two years we have expanded the Group with the launch of two wholly
complementary entities that support the delivery of our core strategy while
also providing additional, diversified sources of revenue.
Harmony IP, a new business division, was established in 2020. It enables
composers and master rights owners to release portions of equity from their
music, giving artists greater flexibility to access future earnings while
retaining majority ownership of their intellectual property. From a One Media
perspective, it supplements our existing revenue streams and expands our
opportunity to create strongly aligned partnerships and relationships with
rights owners, putting us in a favourable position to increase our exposure to
their assets in the future.
Our Technical Copyright Analysis Tool business, TCAT Ltd was established as a
subsidiary business last year. It is a software as a service ("SaaS") platform
- a software licensing and delivery model in which software is licensed on a
subscription basis and is centrally hosted. Developed by One Media, it is a
proprietary, specialist anti-piracy tool which identifies the illegal or
unlicensed use of digital music, helping to maximise revenue for record labels
and also for One Media. It also provides real time data on the past
performance and expected future trends of content, supporting our acquisition
strategy and further de-risking the investment process.
Financial performance
The year under review saw revenues grow by 10% to £4,389,581 (2020:
£4,005,385) and our EBITDA by 11% to £1,648,598 (2020: £1,485,645), driven
by increased consumer demand on streaming platforms and other revenue
distributions from digital platforms, combined with our active asset
management, acquisitions and a continuing focus on maintaining a low cost,
largely fixed cost base.
Net revenue increased by 13% to £2,780,256 (2020: £2,459,351), reflecting
the strong underlying performance of our catalogue. Operating profit was also
up by 5.5% to £1,075,958.
At the end of the period, our cash balance was £2,565,813 (2020:
£6,766,424), providing a solid balance sheet position from which to move
forward in 2022, and our net margin increased to 63% (2020: 61%). Admin
expenses for the year are reported at £1,040,706 (2020: £919,250).
Profit after tax attributable to equity shareholders was £544,575 (2020:
£630,197), reflecting the increase in revenues and the maintenance of strong
margins.
IFRS NAV per Ordinary Share increased to 7p (2020: 6p) and an Operative NAV
per Ordinary Share of 17p. The Directors are of the opinion that the Operative
NAV (Operative NAV is calculated by using the IFRS NAV, adjusting for the
revaluation of catalogues assets to fair value and then adding back the
catalogue amortisation) provides a meaningful alternative performance measure
and the values of the catalogues are based on fair values produced by an
independent valuer.
Development work on TCAT is progressing and has moved to the next phase,
including the incorporation of a new subsidiary and the appointment of an
experienced management team, as detailed below. Circa £1.0 million of capex
was invested into TCAT during the year to support the next phase of its
growth, which we believe presents a significant opportunity for the Group and
industry generally.
The Board continues to review the dividend policy, especially given the
current economic climate, but looks to maintain an equilibrium between
retention of profit to finance long term growth plans whilst rewarding
shareholders for their support. As a result of the positive performance, a
final dividend of 0.055p per share has been declared.
We remain confident that our model for steady growth and continual investment
in copyrights is a proven, recurring cash generative business and the Board
and management remains strongly aligned with investors through its 11.9%
shareholding in the Company.
Operational update
During the year our focus remained on actively creating value and finding
alternative methods to maximise revenues from our music assets. This means
curating, repurposing, restoring and, importantly, policing our content with
all the care that the original writers and performers value and now rely on.
Working with content from previous decades - often overlooked and undervalued
by others in the market - has its advantages. The artists generally are well
known with an established reputation and the tracks are, to a great extent,
rooted in much loved music legacies and are often instantly recognisable. Our
job is to ensure that a music track is available across every territory
(currently over 202) via DSPs and the aggregators that supply those providers,
to maximise exposure, usage and ultimately returns.
During the year, significant strides have been made with our complementary
Group subsidiary TCAT and our Harmony IP platform.
Harmony IP aims to acquire between 10-30% of IP equity on agreed multiples,
mainly targeting composers' rights which typically extend to 70 years after
the artist's death, providing long term income streams, expanding and further
diversifying One Media's recurring revenues. There are no other known
operators offering artists this option and while banks offer artists the
opportunity to borrow against their future earnings, the terms are much less
favourable and lack the additional value that an aligned partnership with One
Media delivers, including access to TCAT.
All of our investments this year were made via Harmony IP, as detailed in the
investments section below, and we continue to build this portfolio, with
significant interest from artists and using TCAT to analyse the past
performance and future trends of content, to predict and identify
opportunities to maximise future earnings for all parties.
At the start of the year, TCAT Ltd ("TCAT") was established as a separate,
limited company within the Group, a decision driven by the growing external
interest in its software capabilities.
TCAT aims to tackle music piracy. Piracy purportedly costs the global economy
alone approximately £9 billion per annum in lost revenues, £200 million of
which is lost from the UK music industry's rights holders. 38% of global music
listeners acquire music through illegal means, often without even knowing it,
and TCAT works to detect copyright infringement across the legitimate DSPs by
alerting rights owners to instances of corrupted data, facilitating the
removal or monetisation of offending tracks.
A business plan is in place at TCAT, which is on track and is expected to be
profitable over a medium-term timeframe. A dedicated team of recognised
specialists has been appointed to drive TCAT to grow towards reaching its full
potential, which we believe is significant based on the piracy statistics and
the rapid expansion of the industry.
In February 2022 Nick Stewart was appointed TCAT CEO. With over 40 years of
experience in the music industry, including senior roles at Universal Music
and Warner Music among others, Nick is extremely well positioned to establish
and grow TCAT's customer base. Nick is exceptionally well connected across the
music industry, with credits including signing U2 to Island Records and having
worked with the Eagles, Neil Diamond and Sir Tim Rice among others. Nick will
leverage his relationships and profile to grow TCAT's brand and market its
capabilities.
Dr. Ed Vernon OBE was appointed TCAT's chairman in November 2020 bringing
almost 40 years of experience in running tech businesses, his successes
resulted in him being awarded an OBE for services to the tech industry.
Further appointments include Gareth Waller, an experienced technical director
with over 15 years' experience of managing large teams of software engineers,
to the position of Chief Technology Officer and Robin Abeysinghe as COO and
CFO.
One Media retains two seats on the board held by myself and our COO Alice
Dyson.
The new management team is charged with delivering on the opportunity to
improve and scale TCAT for wider use across the industry and other
territories. A fundraise is underway directly into the subsidiary TCAT Ltd to
support its next phase of growth, building on the initial client base and
trials are ongoing with two major labels, the world's largest digital
aggregator and the BPI, the trade body whose members include more than 400
independent music companies and all of the UK's major record companies.
Investments
While our investment activity was somewhat curtailed over the last two years
due to the restrictions imposed by the pandemic, our relationships and
network, established over many years in the industry, enabled us to make some
important income accretive acquisitions, leveraging our newly launched Harmony
IP platform through which all our 2021 investments were undertaken.
Nine investments were completed during the year for a total of £4.3 million,
delivering a blended Net Publisher Share ("NPS") multiple of 11.2. This
includes the largest acquisition undertaken by One Media to date - the
composition rights to the catalogue of over 200 tracks of country music star
Don Williams. Described by Rolling Stone Magazine as 'one of the finest
singers of the genre', the acquisition covers Williams' 1970s and '80s output,
during which time he delivered 17 number one hits and became a global
superstar, winning fans from all over the world, especially in the UK. In
1975, The Who's Pete Townshend covered Don's No.1 hit 'Till the Rivers All Run
Dry (https://www.youtube.com/watch?v=JdZuodp3ZZM) ' with Faces legend Ronnie
Lane. Don's 1978 hit 'Tulsa Time (https://www.youtube.com/watch?v=O6MbPWzIFUk)
' was a regular on Eric Clapton's live set and he often jammed with
contemporary stars such as Jimmy Page and Jeff Beck.
Acquisitions undertaken during the period were as follows:
· January 2021: acquired from Ian Levine the producer's income
royalties to Take That's 'A Million Love Songs', 'Could It Be Magic' and 'I
Found Heaven', all from Take That's 1992 debut studio album, Take That &
Party. This attracted much press and introduced Harmony IP to the market.
· February 2021: acquired the licensor's share of the royalties to
the 21 Vision catalogue of rights, comprising over 2,000 recordings from some
of the all-time music greats from over the last seven decades. The 21 Vision
catalogue had been licensed to One Media on a royalty-sharing basis. As part
of the deal, One Media has acquired the licensor's royalty share of the
catalogue on an in-perpetuity basis.
· May 2021: acquired the writer's share to the royalties of over
250 tracks performed by Kid Creole and the Coconut's best known music tracks,
including chart toppers 'Annie I'm Not Your Daddy' and 'Stool Pigeon'.
· June 2021: acquired the award-winning producer, Steve Levine's
rights into music performed by Culture Club, including the global hit 'Karma
Chameleon' and 'Do you really want to hurt me', as well as nineties stars
Louise Redknapp, 911 and the Honeyz. The Honeyz, an English R&B girl
group, enjoyed three UK top 10 hits produced by Levine - 'Finally Found', 'End
of the Line' and 'Love of a Lifetime' - which made Levine one of the most
sought-after producers in the industry.
· June 2021: acquired the producer royalties to three albums by the
1970s funk/disco band Heatwave, produced by the legendary musician,
songwriter, producer and artist Barry Blue: 'Too Hot To Handle' (1976),
'Central Heating' (1978) and 'Current' (1982). This includes the hits 'The
Groove Line' (1978), 'Always and Forever' (1976), 'Mind-Blowing Decisions'
(1978) and the million-selling global smash 'Boogie Nights' (1976), credited
as one of the defining songs of the disco age.
· July 2021: secured our largest acquisition to date, comprising
the composition rights to the catalogue of over 200 tracks of country music
star Don Williams. Described by Rolling Stone Magazine as 'one of the finest
singers of the genre', the acquisition includes Williams's output across the
1970s and 1980s, during which time he delivered 17 number one hits and became
a global superstar, winning fans from all over the world, especially in the
UK. In 1975, The Who's Pete Townshend covered Don's number one hit 'Till The
Rivers All Run Dry' with Faces legend Ronnie Lane and his 1978 hit 'Tulsa
Time' was a regular on Eric Clapton's live set.
· August 2021: with 50% already under our ownership, we acquired
the remaining 50% of the licensor's royalty share of the royalties in the 5868
Ltd catalogues of rights. This added to the Company's bottom line the income
derived from over 1,000 recordings supplied by 5868 Ltd and its respective
partners.
· September 2021: exclusively signed a further deal to include
three new recordings from multimillion selling US artist Evelyn Thomas. Evelyn
Thomas has recorded has recorded 48 singles and EPs, four albums and has
featured on over 1000 compilations and playlists over the years, including the
number one hit 'High Energy', which charted in the UK in 1984. One Media will
represent Evelyn Thomas on her publishing and part ownership to the three new
tracks.
· October 2021: buy out of the licensor's royalty share of the
income in the Mike Bennett Productions catalogue of rights, containing the
income derived from over 6,000 recordings supplied by British songwriter and
producer Mike Bennett and his respective partners. The recordings feature many
'backing tracks' and 'karaoke songs' together with some live albums or
re-recordings performed by the Rubettes, the Stranglers, Wee Papa Girl Rappers
and Wishbone Ash.
Post period end, in March 2022, we announced that we had acquired the
licensor's share of the royalty income to the Orbital Digital Ltd catalogue of
rights, which contains several thousand recordings. The transaction also
established a working relationship with Dutch content distributor FUGA, which
is distributor to this catalogue. Orbital/Rapier Music features more than 40
branded labels across all the known digital platforms including African Lives,
All About Blues, Travelscape Records, The Music Shed, Rapier Music, and
Sunflash. The catalogue ranges from classical through to dance/hip hop and
features a wide array of artists such as Jose Carreras, Jo Jo Adams, Kool
& the Gang, Irish Tenor Trio, Alexandra O'Neal, Joe Strummer, Sid Vicious,
Chic, Lee Perry, The Lambrettas, Dread Filmstone, Sex Pistols, Suketu, Col
Abram, Psy-Co-Billy, Rachel Porter's all female Orchestra and Ebn Ozn.
Catalogue Valuation
Post period end, the Group engaged YM&U Group, well known in the music
industry for its valuation expertise, to undertake a detailed assessment and
fully independent valuation of the full catalogue of rights.
As a result of this report, the portfolio of rights has been valued at £34.8
million (as at April 2022), reflecting a blended NPS multiple of 12.5. This
compares favourably to One Media's blended cost and average historic blended
multiple over all content acquired since 2006 of 6 times and a content value
applied on the Company's asset register (as at 31 October 2021) of £14
million.
We believe that this independent report provides a true reflection of the
value of our underlying assets and vindicates our very careful and prudent
approach to acquisitions over the last 15 years, whereby we consistently apply
conservative multiples when assessing investment opportunities.
The report concludes:
"The Catalogues acquired by One Media IP (including acquisitions over the last
three years) are varied and across the 7 grouped areas reviewed they have been
performing well. There are steady and consistent income streams which is what
you would like and need to see from a portfolio of catalogues and there is
little reliance on one 'superstar' catalogue which dominates the revenue
generation.
The "Pre 2019" catalogues collectively are performing well, and we would
expect the collective value to far exceed the original purchase price. In
future periods, and with a great timescale, we would look to perform a more
granular review of the individual catalogues within this group. Following on
our review we would place an estimated valuation on the catalogue of £34.8m,
with a blended multiple of a conservative 12.5x as a method of calculation."
We continue to demonstrate that our catalogue drives additional value to the
business alongside the growing market values of traded music content. With
many music acquisitions reaching 20-25 times earnings, our mission of focusing
on long term value will continue to differentiate One Media.
Market backdrop and outlook
This year we have emerged from the other side of the global pandemic, which
had an impact on the industry from an entertainment and live music perspective
in particular. Sadly, we are now also dealing with the horrors of war in
Ukraine. For over 75 years, Europe has not seen this kind of unrest to both
humanity and global resources. It is an ignominy at every level and almost
makes writing encouraging and optimistic company reports on business
activities seem insensitive to the predicament of the suffering.
While recent sanctions around supplying the Russian Federation and the
suspension of access to DSPs may hinder growth in affected territories, the
Company has undertaken a brief audit of the potential impact and, given the
very limited levels of business conducted in these areas, does not envisage
any material impact on revenues.
The broader market backdrop against which we're delivering our strategy
continues to be strongly supportive. In its market analysis Music in the Air,
(https://www.goldmansachs.com/insights/pages/infographics/music-streaming/)
Goldman Sachs has significantly upgraded its forecasts, now predicting that
music industry revenues are set to double by 2030 to $131 billion, driven by
streaming and growing demographic trends, including the fact that Millennials
and Generation Z are spending more of their annual budgets on music than any
other age group. Goldman Sachs expects global live music revenues will reach
$38 billion, music publishing $12.5 billion and the recorded music $80
billion.
The digital marketplace is still a young forum and the format of monetised
streaming is less than 15 years old, so there is significant road to run as
platforms continue to expand their reach and technology innovations improve
access and recognition of intellectual property rights.
The opportunity landscape for royalty collection is growing far beyond the
traditional DSPs, such as Amazon, Apple Music and Spotify. New monetisation
avenues are continuing to open up, including Facebook, Peloton, Digital Radio
Stations (such as iHeart Radio), Rakuten, IMusica and YouTube Subscription. As
the world of digital TV music stations grows, supplementing the plethora of
digital radio stations, combined with Smart Speaker technology and voice
activated play listing, the future is looking positive. Moreover, with
advances in the Metaverse and the growth of non-fungible tokens ("NFTs") we
are entering the twilight zone of music values being used in a variety of ways
not imagined five years ago.
The prospects ahead of us are extremely exciting and One Media is well placed
to take advantage of these new opportunities on behalf of shareholders, to
generate value by developing and promoting its rights and exploiting the
digital universe, underpinned by a prudent acquisition strategy that ensures
secure and growing income.
Michael Infante
Chief Executive and Founder
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2021
Year ended Year ended
31 October 2021 31 October 2020
£ £
Revenue 4,389,581 4,005,385
Distribution charges (1,107,127) (1,002,805)
Royalty costs (435,386) (481,832)
Other costs (66,542) (61,397)
Net revenue 2,780,526 2,459,351
Amortisation of catalogues (599,308) (523,170)
Administration expenses (1,040,706) (919,250)
FOREX gains/(losses) (64,554) 2,953
Operating profit 1,075,958 1,019,884
Share based payments (77,178) (62,465)
Finance costs (184,045) (223,384)
Finance income 1 8
Profit from continuing activities 814,736 734,043
Assets disposal (93,939) -
720,797 734,043
Profit on ordinary activities before taxation
Tax expense (176,222) (103,846)
Profit for period attributable to equity shareholders and total comprehensive 544,575 630,197
income for the year
Basic earnings per share 0.24p 0.42p
Diluted earnings per share 0.20p 0.33p
The Consolidated Statement of Comprehensive Income has been prepared on the
basis that all operations are continuing activities.
Consolidated Statement of Changes in Equity
For the year ended 31 October 2021
Share Capital Share redemption reserve Share premium Share based payment reserve Retained earnings Total equity
£ £ £ £ £ £
At 1 November 2019 678,018 239,546 4,314,220 364,756 2,440,209 8,036,749
Proceeds from the issue of new shares 431,713 - 5,159,107 - - 5,590,820
Share based payment charge - - - 62,465 - 62,465
Profit for the year - - - - 630,197 630,197
Dividends paid - - - - (74,582) (74,582)
At 1 November 2020 1,109,731 239,546 9,473,327 427,221 2,995,824 14,245,649
Proceeds from the issue of new shares 2,500 - 11,250 - - 13,750
Share based payment charge - - - 77,178 - 77,178
Profit for the year - - - - 544,575 544,575
Dividends paid - - - - (122,345) (122,345)
At 31 October 2021 1,112,231 239,546 9,484,577 504,399 3,418,054 14,758,807
Consolidated Statement of Financial Position at 31 October 2021
At At
31 October 2021 31 October 2020
£ £
Assets
Non-current assets
Intangible assets 13,484,077 8,884,158
Property, plant and equipment 44,007 91,260
13,528,084 8,975,418
Current assets
Trade and other receivables 1,447,490 1,141,555
Cash and cash equivalents 2,565,813 6,766,424
Total current assets 4,013,303 7,907,979
Total assets 17,541,387 16,883,397
Liabilities
Current liabilities
Trade and other payables 904,015 823,151
Deferred tax 132,830 117,356
Total current liabilities 1,036,845 940,507
Borrowings 1,745,735 1,697,241
Total liabilities 2,782,580 2,637,748
Equity
Called up share capital 1,112,231 1,109,731
Share redemption reserve 239,546 239,546
Share premium account 9,484,577 9,473,327
Share based payment reserve 504,399 427,221
Retained earnings 3,418,054 2,995,824
Total equity 14,758,807 14,245,649
Total equity and liabilities 17,541,387 16,883,397
Consolidated and Company Cash Flow Statement
For the year ended at 31 October 2021
Year ended Year ended Year ended Year ended
31 October 2021 31 October 2020 31 October 2021 31 October 2020
Group Group Company Company
£ £ £ £
Cash flows from operating activities
Operating profit before tax 720,798 734,043 (418,586) (57,627)
Amortisation 599,169 523,170 369,263 -
Depreciation 50,509 18,504 - -
Share based payments 77,178 62,465 77,178 (38,560)
Finance income (1) (8) (1) (3)
Finance costs 184,045 (313,783) 223,384 - -
(Increase) in receivables (162,150) (4,070,290) 275,472
Increase/(decrease) in payables (69,144) (238,909) 144,017 178,193
Corporation tax paid (72,063) (127,735) - -
Net cash inflow (outflow) from operating activities 1,176,708 1,032,764 (3,898,419) 357,475
Cash flows from investing activities
Investment in intellectual property rights and TCAT (5,199,087) (506,919) - -
Investment in property, plant and equipment (3,257) (102,117) - -
Finance income 1 8 1 3
Net cash used in investing activities (5,202,343) (609,028) 1 3
Cash flows from financing activities
Net proceeds from the issue of new shares 13,750 5,590,820 13,750 5,590,820
Finance cost paid (114,873) (109,136) (114,873) (109,136)
Loan notes 48,492 74,975 48,492 74,975
Dividend paid (122,345) (74,582) (122,345) (74,582)
Net cash inflow (outflow) from financing activities (174,976) 5,482,077 (174,976) 5,482,077
Net change in cash and cash equivalents (4,200,611) 5,905,813 (4,073,394) 5,839,555
Cash at the beginning of the year 6,766,424 860,611 6,388,047 548,492
Cash at the end of the year 2,565,813 6,766,424 2,314,653 6,388,047
Notes to the Final Results
Basis of preparation
The Company is a public limited company incorporated and domiciled in England
under the Companies Act 2006. The Board has adopted and complied with
International Financial Reporting Standards (IFRS) as adopted by the European
Union. The Company's shares were admitted for trading on the AIM market of the
London Stock Exchange on 18 April 2013.
Year ended Year ended
31 October 2021 31 October 2020
£ £
Analysis of the charge for the year
UK corporation tax charge 171,122 72,063
Deferred tax 5,100 31,783
176,222 103,846
The standard rate of tax for the year, based on the UK standard rate of
corporation tax is 19% (2020: 19%). The actual tax charge for the periods is
different than the standard rate for the reasons set out in the following
reconciliation:
Reconciliation of current tax charge Year ended Year ended
31 October 2021 31 October 2020
£ £
Profit on ordinary activities before tax 814,737 734,043
Tax on profit on ordinary activities at 19% (2020: 19%) 154,800 139,468
Effects of:
Non-deductible expenses 18,071 14,869
Adjustments to tax charge in respect of previous periods - -
Fixed asset timing differences 5,100 31,783
Depreciation in excess of capital allowances
8,768 (4,430)
Share scheme deduction
Research and development (10,517) (77,844)
Total tax charge 176,222 103,846
Earnings per share
The weighted average number of shares in issue for the basic earnings per
share calculations is 223,973,646 (2020: 149,252,562) and for the diluted
earnings per share assuming the exercise of all warrants and share options is
267,606,979 (2020: 189,047,539).
The calculation of basic earnings per share is based on the profit for the
period of £544,575 (2020: £630,197). Based on the weighted average number of
shares in issue during the year of 223,973,646 (2020: 149,252,562) the basic
earnings per share is 0.24p (2020: 0.42p). The diluted earnings per share is
based on 267,606,979 shares (2020: 189,047,539) and is 0.20p (2020: 0.33p).
EBITDA
Profit from continuing activities before interest, tax, depreciation and
amortisation for the twelve months ended 31 October 2021 was £1,648,459
(2020: £1,485,645).
Directors' responsibilities
The Annual Report, including the financial information contained therein, is
the responsibility of, and was approved by the directors on 21 April 2022.
Availability of Report and Accounts
Copies of the Company's Report and Accounts will be posted to shareholders
shortly. Copies of the Company's Report and Accounts will also be available at
the registered office of the Company and can be viewed on the Company's
website, www.omip.co.uk (http://www.omip.co.uk) .
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR UAOWRUBUSUARRecent news on One Media IP
See all newsREG - One Media iP Group - Notice of AGM - Replacement
AnnouncementREG - One Media iP Group - Notice of Results
AnnouncementREG - One Media iP Group - Trading Update and Change of Name of Broker
AnnouncementREG - One Media iP Group - Holding(s) in Company
AnnouncementREG - One Media iP Group - Holding(s) in Company
Announcement